SPENCERSNSE11 February 2020

Spencer's Retail Limited has informed the Exchange regarding Investor Presentation / Investor Update/Press Release dated 11 February, 2020 on Unaudited Financial Results for theQuarter and nine months...

Spencer's Retail Limited

MAKES FINE LIVING affordable

The General Manager Department of Corporate Service, BSELimited (Scrip Code: 542337) Phiroze Jeejeebhoy Tower Dalal Street Mumbai - 400001

RP- Sanjiv Goenka Group

Growing

Legacies

SRL:SEC:SE:2019-20/126

11 February, 2020

The Manager Listing Department, National Stock Exchange of India Limited (Symbol: SPENCERS) Exchange Plaza, 5th Floor Plot No. C/1, G-Block Bandra-Kurla Complex Bandra [East], Mumbai - 400051

The Secretary The Calcutta Stock Exchange Limited 7, Lyons Range Kolkata - 700 001

Dear Sir,

Sub: Investor Updates/Press Release on Unaudited Financial Results for the Quarter/Nine Months

ended 31 December, 2019.

Pursuant to Regulation 30 of SEBI (LODR) Regulation, 2015, Please find annexed herewith a copy of the Investor Update/Press Release dated 11 February, 2020 on Unaudited Financial Results for the Quarter and nine months ended on 31 December, 2019.

We request you to make this information public by disclosing the same on your website.

The above information is also available on the website of the Company: www.spencersretail.com

Thanking you,

Yours faithfully,

r Spencer's Retail Limite

nt Company Secretary FCS-4818 Encl: as above

limited Spencer's Retail (Formerly Known as RP-SG Retail Limited) Regd. Office: Duncan House, ist Floor, 31, Netaji Subhas Road, Kolkata-700 001 Corporate Office: RPSGHouse, 3rd floor, 2/4 Judges court Road, Mominpore, Kolkata-700 027

Tel: +91 33 24871091 Web: www.spencersretail.com

CIN: L74999WB2017PLC219355

Spencer’s Retail Limited Earnings Presentation – Q3 FY20

Feb-20

| RP-Sanjiv Goenka Group Presentation

Key performance highlights

Scale

Efficiency

₹ 607 Cr.

₹ 1,820 Cr.

Q3 FY20 Operating Revenue

9M FY20 Operating Revenue

>34%

Q3 FY20 Revenue from Non-Food Categories

~ 0.25 lac sq. ft.

~ 0.64 lac sq. ft.

21.1%

>35%

9M FY20 Revenue from Non-Food Categories

21.1%

9M FY20 Gross Margin

Trading Area added during the Q3 FY20

# of New Stores opened during Q3 FY20

Trading Area added during 9M FY20

# of New Stores opened during 9M FY20.

Q3 FY20 Gross Margin

(-) 0.8%

Q3 FY20 Q-o-Q Sales Growth

9M FY20 Y-o-Y Sales Growth

Financial numbers are of Standalone Business.

Feb-20

| RP-Sanjiv Goenka Group Presentation

Key performance highlights

For Q3FY20

For 9M FY20

• Revenue growth of (-)0.8% (QoQ)

• Revenue growth of 9% (YoY)

• Gross Margin % stands at 21.1%

• EBITDA of ₹ 24.7 Cr* and PAT of

• EBITDA of ₹ 82.8 Cr* and PAT of

₹ (-) 17.1 Cr*

₹ (-) 31.8 Cr*

• New 3 stores opened in Q3 FY20

• New 10 stores opened in 9M FY20

*Excluding the impact of IND AS 116, Standalone EBITDA and PAT for the quarter ended Dec 31, 2019 is ₹ (-)1.04 Cr and ₹(-) 13.61 Cr. *Excluding the impact of IND AS 116, Standalone EBITDA and PAT for the period ended Dec 31, 2019 is ₹ 7.82 Cr and ₹ (-) 23.02 Cr. Financial numbers are of Standalone Business.

Feb-20

| RP-Sanjiv Goenka Group Presentation

Financial Parameters FY20

Quarter

9 Months

Revenue from Operation (₹ Cr)

612

607

573

Revenue from Operation (₹ Cr)

1,820

1,664

Q3 FY19 Q2 FY20 Q3 FY20

Gross Margin (%)

21.2%

21.3%

21.1%

9M FY19

9M FY20

Gross Margin (%)

21.2%

21.1%

Q3 FY19 Q2 FY20 Q3 FY20

9M FY19

9M FY20

Financial numbers are of Standalone Business.

Feb-20

| RP-Sanjiv Goenka Group Presentation

Operational Parameters FY20

Quarter

Store Count (Nos)

161

163

147

Q3 FY19 Q2 FY20 Q3 FY20

Trading Area (Mn Sq ft)

1.41

1.43

9 Months

Store Count (Nos)

163

147

9M FY19

9M FY20

Trading Area (Mn Sq ft)

1.43

1.30

Financial numbers are of Standalone business.

Q3 FY19 Q2 FY20 Q3 FY20

Feb-20

| RP-Sanjiv Goenka Group Presentation

9M FY19

9M FY20

Operational Parameters FY20

Quarter

9 Months

Gross Sales per Sq ft (₹)

4700

4600

4400

Gross Sales per Sq ft (₹)

14200

13400

Q3 FY19

Q2 FY20

Q3 FY20

9M FY19

9M FY20

*Gross Sale includes Taxes Gross Sales per sq ft calculated on Standalone basis for Quarter ended

*Gross Sale includes Taxes Gross Sales per sq ft calculated on Standalone basis for nine months ended

Feb-20

| RP-Sanjiv Goenka Group Presentation

Standalone Financials – Profit & Loss

3 months ended

Growth

Standalone (₹ Cr)

31-Dec-19 30-Sep-19 31-Dec-18 9 147 0.53 12.97

3 161 0.23 14.06

3 163 0.25 14.29

Y-o-Y

Q-o-Q

New Stores added

11%

1% Total Store count

TA added (Lac sq.ft)

10%

2% TA exit (Lac sq.ft)

607.1 478.9 128.2 21.1% 41.1 69.3 6.9 24.72 4.1% 25.5 16.3 (17.09) -2.8% - (17.09) (0.4) (17.45)

611.8 481.8 130.0 21.3% 41.3 68.1 2.3 23.06 3.8% 23.6 15.1 (15.62) -2.6% - (15.62) (0.4) (15.97)

573.5 451.6 121.9 21.2% -12 bps

5.9% 6% 5.2%

-0.8% Revenue from operations

-1% Cost of Goods Sold

-1.4% Gross Margin

-13 bps

Gross Margin %

8% -14% 1%

38.1 80.2 6.8 10.34 1.8% 227 bps 30 bps

6.2 1.8 2.34 -830% 0.4% -322 bps -26 bps

0% Employee expenses 2% Other expenses

195% Other income EBITDA

9% PBT

EBITDA %

Depreciation Finance costs

PBT %

Tax Expenses PAT Other Comprehensive Income Total Comprehensive Income

0.9 1.46 (0.4) 1.09

9 months ended

31-Dec-19 10 163 0.64 14.29

31-Dec-18 19 147 1.37 12.97

1,819.7 1,435.7 384.0 21.1% 120.8 199.0 18.6 82.80 4.6% 70.9 43.7 (31.78) -1.7% - (31.78) (1.1) (32.85)

1,663.7 1,310.4 353.4 21.2% 112.5 229.4 19.9 31.36 1.9% 17.9 5.9 7.55 0.5% 2.4 5.15 (1.0) 4.17

*Excluding the impact of IND AS 116, Standalone EBITDA and PAT for the Quarter ended Dec 31, 2019 is ₹ (-)1.04 Cr and ₹(-) 13.61 Cr. *Excluding the impact of IND AS 116, Standalone EBITDA and PAT for the period ended Dec 31, 2019 is ₹ 7.82 Cr and ₹ (-) 23.02 Cr.

Feb-20

| RP-Sanjiv Goenka Group Presentation

Business Integration

Business Integration underway

• Cultural integration

•

Ensuring continuity of customer experience and

business

•

Store profitability actions

•

Shutdown of 3 Loss making stores

• Business synergies and cross synergies

identification

•

Supply Chain Opportunities

SAP integration underway

Process alignment & expand customer base

Product extensions & extend geographic reach

Corporate culture alignment

Post Merger Integration

Technology integration

Rapid and effective knowledge transfer

Portfolio rationalisation

Feb-20

| RP-Sanjiv Goenka Group Presentation

Standalone Financials – Profit & Loss

3 months ended

Growth

31-Dec-19

5th Jul'19 - 30th Sep'19

Q-o-Q

Standalone (₹ Cr)

0.89

94.4

72.3

22.1

0.91

87.9

72.5

15.5

New Stores added

-8% Total Store count

TA added (Lac sq.ft)

-2.5% TA exit (Lac sq.ft)

7.4% Revenue from operations

0% Cost of Goods Sold

42.9% Gross Margin

23.4%

17.59% 581 bps

Gross Margin %

8.5

16.3

0.2

(2.46)

-2.6%

7.5

6.1

(16.12)

-17.1%

(16.12)

0.1

(16.06)

9.5

27.6

0.2

-11% Employee expenses

-41% Other expenses

15% Other income

(21.38)

EBITDA

-24.31% 2171 bps

EBITDA %

9.4

6.2

Depreciation

Finance costs

(36.92)

-56% PBT

-41.98% 2491 bps

PBT %

(36.92)

0.1

(36.80)

PAT

Other Comprehensive Income

Total Comprehensive Income

For the period

5th Jul'19 - 31st Dec'19 -

0.89

182.4

144.8

37.6

20.6%

18.0

43.9

0.4

(23.84)

-13.1%

16.9

12.3

(53.04)

-29.1%

(53.04)

0.2

(52.86)

Feb-20

| RP-Sanjiv Goenka Group Presentation

* Excluding the impact of INDAS 116, EBITDA and PAT for the quarter ended Dec 31, 2019 is (-) ₹ 9.70 cr and (-) ₹15.02 cr. * Excluding the impact of INDAS 116, EBITDA and PAT for the period ended Dec 31, 2019 is (-) ₹ 38.89 cr and (-) ₹51.06 cr.

Consolidated Financials – Profit & Loss

3 months ended

Growth

Consolidated (₹ Cr)

31-Dec-19 30-Sep-19 31-Dec-18

Y-o-Y

Q-o-Q

699.8

549.4

150.4

699.5

548.5

150.9

573.5

451.6

121.9

22.0%

0.0% Revenue from operations

Cost of Goods Sold

23.4%

-0.4% Gross Margin

21.5%

21.6%

21.2% 24 bps

-9 bps

Gross Margin %

51.2

86.9

7.2

19.46

2.8%

35.2

23.8

(39.50)

-5.6%

52.5

84.3

2.5

16.66

2.4%

33.2

23.0

(39.56)

-5.7%

(39.50)

(39.56)

(0.3)

(0.2)

(39.80)

39.6

80.2

6.9

9.00

29%

-2% Employee expenses

3% Other expenses

187% Other income

EBITDA

1.6% 121 bps

40 bps

EBITDA %

6.4

1.8

0.77

Depreciation

Finance costs

PBT

0.1% -578 bps 1 bps

PBT %

0.9

(0.11)

(0.4)

(0.48)

Tax Expenses

PAT

Other Comprehensive Income

Total Comprehensive Income

9 months ended

31-Dec-19

31-Dec-18

2,000.0

1,573.0

1,663.7

1,310.4

427.1

21.4%

143.6

234.5

19.0

67.98

3.4%

90.5

59.0

(81.52)

-4.1%

(81.52)

(0.9)

(82.42)

353.4

21.2%

116.6

229.6

20.3

27.44

1.6%

18.6

5.9

2.96

0.2%

2.4

0.56

(0.9)

(0.38)

*Excluding the impact of IND AS 116, Consolidated EBITDA and PAT for the quarter ended Dec 31, 2019 is ₹ (-) 13.54 Cr and ₹(-) 32.26 Cr. *Excluding the impact of IND AS 116, Consolidated EBITDA and PAT for the period ended Dec 31, 2019 is ₹ (-) 22.05 Cr and ₹ (-) 65.60 Cr.

Feb-20

| RP-Sanjiv Goenka Group Presentation

Thank You

About Spencer’s Retail Limited: Spencer’s Retail Limited, part of RP-Sanjiv Goenka Group, is a multi-format retailer providing a wide range of quality products across categories such as FMCG, fashion, food, staples, general merchandise, personal care, home essentials, electrical and electronics to its consumers. specialty sections such as Spencer’s Gourmet, Patisserie, Wine & Liquor and Epicuisine section are some of the key differentiators in our hypermarket stores. The first ever hypermarket in India was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s (including Nature’s Basket) runs 196 stores with a total 15.2 Lacs Square Feet in over 42 cities in India. Spencer’s brand positioning – MAKES FINE LIVING affordable– embodies its philosophy of delighting shoppers with the best products and services that enable a fine living at reasonable prices, while providing them with a warm, friendly and educational retail environment.

Disclaimer: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Spencer’s Retail Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Feb-20

| RP-Sanjiv Goenka Group Presentation

Spencer’s Retail Limited

Q3 FY20 – Highlights: Revenue from Operations at ₹ 700 Crore (22% YoY growth); Gross Margin stands at 21.5% (21.2% in Q3FY19); Opened 3 new stores of Spencer’s. Standalone basis Spencer’s Revenue from Operations grew 6% YoY.

Kolkata: February 11, 2020: Spencer’s Retail Ltd reported turnover of ₹ 607 crore and Gross Margin of 21.1% for quarter ended December 31, 2019.

As on December 31, 2019 the total number of stores has increased to 163 from 147 stores as on December 31, 2018. During the quarter the Company has added 3 stores into its existing cluster. The Company's total trading area has also increased to 14.29 Lacs square feet as on December 31, 2019, from 12.97 Lacs square feet as on December 31, 2018.

Natures Basket Ltd reported turnover of ₹ 94 crore with total 33 stores having trading area of 0.89 Lacs square feet as on December 31, 2019.

Unaudited Consolidated Financial Results for the quarter ended December 31, 2019:

 Revenue from Operations for the quarter ₹ 700 Cr  Gross Margin for the quarter ₹ 150 Cr at 21.5%  Positive EBITDA ₹ 19.46 Cr*  PAT (-)₹ 39.50 Cr*

*Excluding the impact of IND AS 116, EBITDA and PAT for the quarter ended December 31, 2019 is (-) ₹ 13.54 Cr and (-) ₹ 32.26 Cr respectively.

Mr. Shashwat Goenka, Sector Head, said, “We continue to remain focused on our long term strategy which have helped us to deliver resilient performance during the quarter. Business Integration is still underway for Natures Basket Limited and we have started witnessing signs of its initial synergies with Spencers Retail Limited.”

Completed the acquisition of Natures Basket Limited on July 4, 2019 from Godrej Industries Limited. Natures Basket Limited has 33 stores in the western part of India including prime locations in Mumbai, Pune and Bengaluru. This acquisition will help us unlock synergy and will give us access to the western India market.

About Spencer’s Retail Limited: Spencer’s Retail Limited (www.spencersretail.com | NSE: Spencers | BSE: 542337), part of RP-Sanjiv Goenka Group, is a multi-format retailer providing a wide range of quality products across categories such as FMCG, fashion, food, staples, general merchandise, personal care, home essentials, electrical and electronics to its consumers specialty sections such as Spencer’s Gourmet, Patisserie, Wine & Liquor and Epicuisine section are some of the key differentiators in our hypermarket stores. The first ever hypermarket in India was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s runs 196 stores (including Nature’s Basket) with a total 15.2 Lacs Square Feet in over 42 cities in India. Spencer’s brand positioning – Makes Fine Living affordable – embodies its philosophy of delighting shoppers with the best products and services that enable a fine living at reasonable prices, while providing them with a warm, friendly and educational retail environment.

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Spencer's Retail Limited has informed the Exchange regarding Investor Presentation / Investor Update/Press Release dated 11 February, 2020 on Unaudited Financial Results for theQuarter and nine months...

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